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Whilst it may not be a huge deal, we thought it was good to see that the discoverIE Group plc (LON:DSCV) Independent Non-Executive Chairman, Bruce Thompson, recently bought UK£65k worth of stock, for UK£5.44 per share. That purchase might not be huge but it did increase their holding by 19%.
View our latest analysis for discoverIE Group
The Last 12 Months Of Insider Transactions At discoverIE Group
In the last twelve months, the biggest single purchase by an insider was when Group Chief Executive & Executive Director Nicholas Jefferies bought UK£200k worth of shares at a price of UK£6.33 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£5.63). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While discoverIE Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
discoverIE Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does discoverIE Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. discoverIE Group insiders own about UK£9.9m worth of shares. That equates to 1.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The discoverIE Group Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on discoverIE Group stock. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with discoverIE Group and understanding this should be part of your investment process.